It is the oil price crash of 2014, and the Norwegian government is fearing a recession. What policies can be enacted to avoid a recession?

In this scenario, it would be suitable to use some Keynes. There are two parts to this. The first part is lowering taxes and increasing government spending. The second part is decreasing interest rate. By having more money flowing in the economy, there should be an increase in demand (points to graph).

JR
Answered by Johannes R. Economics tutor

2412 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Define collusion, including a brief explanation of the different types of collusion, and explain why firms in an oligopolistic market would want to collude.


Are taxes an effective way to stop people smoking?


Should the fizzy drinks market be regulated or left to the free workings of the market?


How can I evaluate the extent to which increased competition leads to higher levels of economic efficiency?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning